CEO suspended by South African coal giant Exxaro, governance probe launched

Exxaro Resources, a coal miner in South Africa, announced on Wednesday that its board had given CEO Nombasa Tsengwa a “precautionary suspension” until an independent investigation “into allegations related to workplace conduct and governance practice” is conducted.

“The Board does not assume that any such claims and the investigations that follow will be resolved, but it does take them extremely seriously. Exxaro (EXXJ.J), opens new tab, stated in a statement that it will follow the investigation’s findings before taking any necessary action.

Tsengwa did not immediately respond to requests for comment.

Exxaro stated that the investigation will be conducted by the legal firm ENS and that Riaan Koppeschaar, the company’s longtime financial director, will also serve as acting CEO.

Tsengwa, who took over as CEO in August 2022, was in charge of Exxaro’s hunt for clean energy resources, primarily manganese and copper, as the company looks to move away from coal, which pollutes the environment.

She also serves as president of the Minerals Council South Africa, which is the nation’s principal miners’ representative organization.

“The Board is fulfilling its fiduciary duties by taking decisive steps to act in the best interests of the company and stabilize its leadership, while it conducts an appropriately thorough and independent investigation in line with company values and policies,” stated Geoffrey Qhena, chairman of Exxaro.

“The Board and management team will continue to implement our strategy of maximizing the value of our current assets, while undertaking a measured and responsible transition from a coal based to a diversified minerals and renewable energy solutions business,” Qhena added.

Exxaro said on Tuesday it expects its thermal coal output to fall 6% in the full-year to Dec. 31, compared to the previous year, mainly due to lower demand from Eskom. Its sales volumes are expected to drop by 2%.